$13 to $26: Exploring The Bitcoin Rally #bitcoin

At least for now, it seems like the market does not even want a correction. Traditional technical analysis theory introduces a concept of Fibonacci retracements, where a price correction backtracks 38% or 62% (three eights and five eighths, both ratios between small Fibonacci numbers) of the rally’s gains, and a correction within a correction – the spike back up that inevitably follows a fall – itself tends to follow the same patterns. Here, the conventional wisdom has been broken. Bitcoin fell down, but within hours it came back even stronger. Psychological thresholds matter. In the last two price charts above, one can clearly see how the price began to drop quickly once it broke below a key psychological threshold that Bitcoin had gained only a few days earlier. A trading strategy that Bitcoin traders may wish to consider is setting up an automated sell order that would ...